Storing passwords in SQL Server for authentication by your application is a common practice. But not always a good one. Someone with access could easily see all passwords and perhaps cause mischief inside your application. Imagine the office gossip getting access to your HR application as the HR director! Not a good thing. Dinesh Asanka has written a short piece on how you can use a built in function in SQL Server to encrypt these passwords and use them with a minimum of effort.
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